Hallstead Jewelers Case Study

960 WordsJul 22nd, 20134 Pages

Hallstead Jewelers Case Study

Class: Managerial Accounting
Instructor: Robert O’Haver

1. The break even point in units and sales have increased form 2003 to 2004 to 2006 due to the greater increase in fixed costs especially from expanding the business as well as insufficient average sales and unit sales to compensate these changes. The margin of safety has decreased over the years due to the increase in expenses and the lack of gross profit to compensate.
Calculations:
| | 2003 | 2004 |2006 |
|Break-even point in number of sales |$3,197 / $.707 = |$3,260 / $.654 =…show more content…

Both the break even point for sales in dollars and the break even point for number of unit sales has reduced. The fact that this number has lowered is a good sign for the company. This simply means that they would have to sell less number of units or earn lower revenue to reach the break even point. The net income at the end of the statement has increased as well, which again is good.
Calculations:
Break even $4889/ 0.458 point in sales =$10674.67 thousand dollars Break even $4889/ 0.712 point in number =6866 units of sales tickets

4. Here it is seen that the opposite of answer 3 happens. Both the point of break even for sales dollars and number of unit sales has gone up. Of course this is bad for the company as they now have to not only sell more units but also earn

COMPANY OVERVIEW
Hallstead Jewelers has been one of the premiere jewelers in the United States for 83 years. Located in the largest city in the tri-state area, the company has remained a family business since its inception. Up until 1999, the company had operated in the same location without the need to expand or relocate due to its superb reputation and loyal customer base. However, Hallstead Jewelers reached a point during that year when profits began to decrease and sales became stagnant. After…

1.0 ABOUT THE CASE
Hallstead Jewelers was one of the largest jewellery and gift stores in the United States for 83 years. Customers came from throughout the region to buy from extensive collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even though the principal retail shopping areas shifted two blocks west, Hallstead’s reputation and selection still brought in customers.
In 1999 however, sales became stagnate and…

Hallstead
Jewelers
1.) Break-even ticket sales increased from 4533 in 2003, to 4998 in 2004 and 7491 in 2006. Break-even point in Sales Dollars has changed from $7,285 in 2003, to $7,617 in 2004 and $11,634 in 2006. (Table 1) The margin of safety has changed from $1,298 in 2003, to $485 in 2004, and a loss of $923 in 2006. (Table 2) There is a decrease from 2003 to 2006. Fixed cost per month attributed to stores relocation and subsequent renovations caused a decrease from 2003 to…

INTRODUCTION: Hallstead Jewelers is a family owned company that has been around for generations. After the death of their father Gretchen and Michaela resumed ownership of a business that had been very successful for many years. However, due to changes in the market related to competition, customer demand, and demographics, business has not been as profitable as the sisters hoped it would be upon taking over of (remove) the company. Michaela and Gretchen are now faced with the tough task of revitalizing…

was 11,902 units sold. In respect to the break-even point in sales dollars, the break-even point for 2003 was $7,131,204. In 2004 this value was $7,456,555, and in 2006, the break-even point rose incrementally to $11,556,842. During 2003 and 2004, Hallstead resided in their previous location which held 10,230 square feet. Between these years, there is an increase in their break-even point, but this change can be associated with a down year in sales. Their sales decreased by approximately $481,000. Along…

their fatherâs death, three siblings, Gretchen Reeves, Michaela Hurd, and James [Hallstead], inherited the Hallstead family jewelry business that has been in operation for the past 83 years. Hallstead Jewelers, located in the largest city of the tri-state region, has an established reputation for quality and selection and has grown into one of the largest jewelers in the United States. Nonetheless, since 1999, Hallstead Jewelersâ profits have been slipping and sales have stagnated.
Two years ago…

CASE: Hallstead Jewelers
1) How has the breakeven point in number of sales tickets (number of customer orders written) and breakeven in sales dollars changed from 2003, to 2004, and to 2006? How has the margin of safety changed? What caused the changes?
The Breakeven point in number of sales tickets were “4,535”, “5,000” and “7,505” in 2003, 2004 and 2006. The Breakeven in sales dollars for the three years were “$7,287,043”, “$7,620,696” and “$11,655,277” respectively. While the margin of…

Submitted by Yellow Team
Eunice King
Ronda Klassen
Joshua Krupnick
Larry McCraw
Ronald Mills
BUS 5431 Managerial Accounting
Professor Nancy Shoemake
April 18, 2010
1.0 Summary
Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from throughout the region to buy from extensive collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best.
Even…